During hyperinflations, the velocity of money generally increases because
A) money is no longer a good store of value, so people spend it slowly.
B) money is better store of value, so people spend it immediately.
C) economic agents have irrational expectations.
D) money is no longer a good store of value, so people spend it immediately.
Which one of the following statements is true of the Consumer Price Index?
A) It does not take account of the price of imported goods and services.
B) It measures changes in prices of a fixed basket of goods.
C) It does not take into account the price of used goods.
D) It understates the true rate of inflation.
As the dollar depreciates relative to the Russian ruble, U.S. goods become cheaper for
Russians to purchase. Therefore, in the foreign exchange market, the
A) supply curve of dollars is downward sloping.
B) demand curve for dollars is downward sloping.
C) supply curve of euros is downward sloping.
D) demand curve for euros is upward sloping.
In 2012, estates were taxed only if they exceeded a threshold of ________.
A) $5 million
B) $1 million
C) $100 million
D) $50 million
The law of supply states that:
A) firms supply more of a product as consumer income rises.
B) firms supply more of a product as consumer income falls.
C) firms supply more of a product as the price of the product rises.
D) firms supply more of a product as the price of the product falls.
Figure 1.1
Refer to Figure 1.1. Slope of the relationship or the wage rate shown in Figure 1.1 is:
A) $5.15 per hour.
B) $10 per hour.
C) $13.33 per hour.
D) $15 per hour.
Assuming that the economy is in the long run equilibrium at full employment, a
reduction in the money supply will cause a(n):
A) increase in the price level and an increase in real GDP.
B) increase in the price level and a reduction in real GDP.
C) reduction in the price level and an increase in real GDP.
D) none of the above
What type of spending is the largest component of the GDP?
A) consumption
B) government purchases
C) net exports
D) investment
If saving is negative, which must be true?
A) Consumption is greater than income.
B) Income is greater than production.
C) Income is greater than consumption.
D) Production is greater than income.
Daily Output of Scotland and Poland
Table 18.1 Refer to Table 18.1. Scotland has a
comparative advantage in:
A) accordions.
B) bagpipes.
C) both accordions and bagpipes.
D) neither accordions nor bagpipes.